CVS Health Corp (NYSE:CVS) reported second-quarter revenue and profit that beat Wall Street estimates on Wednesday, and raised its full-year adjusted earnings guidance, though cautious guidance pressured shares.
Revenue rose 7.3% year-over-year to $106.1 billion, above analyst estimates of $100.11 billion
Adjusted earnings per share came in at $2.58, up 43% from a year earlier and well ahead of the $1.85 consensus estimate. Operating income nearly doubled to $4.7 billion, compared with estimates of $3.94 billion, while net income reached $3 billion versus expectations of $2.36 billion. The company raised its full-year adjusted EPS guidance to a range of $7.90 to $8.10, up from a prior estimate of $7.45.
CVS also lifted its forecast for cash flow from operations to at least $11.5 billion, up from a previous outlook of at least $9.5 billion. By segment, Health Care Benefits revenue rose 3.5% to $37.5 billion, Health Services revenue climbed 11.5% to $51.8 billion, and Pharmacy & Consumer Wellness revenue was flat at $33.8 billion. On the earnings call, the company said it is “maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds.” Shares of CVS Health were down 5.7% in Wednesday morning trading